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THE CHARTERED ACCOUNTANTS ACT, 1949 THE CHARTERED ACCOUNTANTS ACT, 1949
ISBN : 978-81-8441-123-2
(Updated as on July 1, 2013)
The Institute of Chartered Accountants of India (Set up by an Act of Parliament)
www.icai.org
July/2013/5,000(Updated)
New Delhi
THE CHARTERED ACCOUNTANTS ACT, 1949 (No. 38 of 1949)
As amended by The Chartered Accountants (Amendment) Act, 2011 (No. 3 of 2012)
Updated as on July 1, 2013
The Institute of Chartered Accountants of India (Set up by an Act of Parliament) New Delhi
THE CHARTERED ACCOUNTANTS ACT, 19491 (No. 38 of 1949)
An Act to make provision for the regulation of the [profession of Chartered Accountants].
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WHEREAS it is expedient to make provision for the regulation of the 3[profession of chartered accountants] and for that purpose to establish an Institute of Chartered Accountants; It is hereby enacted as follows :−
CHAPTER I
PRELIMINARY 1.
Short title, extent and commencement (1)
This Act may be called Accountants Act, 1949.
4
It extends to the whole of India 5[………...]
(3)
It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf6.
(2)
2.
the
Chartered
Interpretation (1)
In this Act, unless there is anything repugnant in the subject or context,− (a)
“associate” means an associate member of the Institute; ____________________ Footnotes given at the end of each Chapter.
1
7
[(aa) “Authority” means the Appellate Authority constituted under Section 22A;
(aaa) “Board” means the Quality Review Board constituted under Section 28A]; (b)
“chartered accountant” means a person who is a member of the Institute 8 [……….];
(c)
“Council” means the Council of the Institute;
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[(ca) “firm” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932*, and includes, (i)
the limited liability partnership as defined in clause (n) of subsection (1) of section 2 of the Limited Liability Partnership Act, 2008**; or
(ii)
the sole proprietorship,
registered with the Institute];
* **
(d)
“holder of a restricted certificate” means a person holding a permanent or temporary restricted certificate granted by a Provincial Government under the Restricted Certificates Rules, 1932;
(e)
“Institute” means the Institute of Chartered Accountants of India constituted under this Act;
No. 9 of 1932 No. 6 of 2009
2
10
[(ea) “notification” means a notification published in the Official Gazette];
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[(eb) “partner” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932* or in clause (q) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008**, as the case may be;
(ec)
“partnership” means – (A)
a partnership as defined in section 4 of the Indian Partnership Act, 1932*; or
(B)
a limited liability partnership which has no company as its partner];
(f)
“prescribed” means prescribed regulations made under this Act;
by
(g)
“Register” means the Register Members maintained under this Act;
of
(h)
“registered accountant” means any person who has been enrolled on the Register of Accountants maintained by the Central Government under the Auditor’s Certificates Rules, 1932;
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[(ha) “specified” means specified by rules made by the Central Government under this Act];
* **
No. 9 of 1932 No. 6 of 2009
3
13
[(haa) “sole proprietorship” means an individual who engages himself in the practice of accountancy or offers to perform services referred to in clauses (ii) to (iv) of sub-section (2) ];
14
[(hb) “Tribunal” means a Tribunal established under sub-section (1) of Section 10B;]
(i)
(2)
”year” means the period commencing on the 1st day of April of any year and ending on the 31st day of March of the succeeding year.
A member of the Institute shall be deemed “to be in practice”, when individually or in partnership with chartered accountants 15[in practice], 16[or in partnership with members of such other recognised professions as may be prescribed], he, in consideration of remuneration received or to be received,− (i)
engages himself accountancy; or
(ii)
offers to perform or performs services involving the auditing or verification of financial transactions, books, accounts or records, or the preparation, verification or certification of financial accounting and related statements or holds himself out to the public as an accountant; or
(iii)
renders professional services or assistance in or about matters of principle or detail relating to accounting procedure or the recording, presentation
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in
the
practice
of
or certification of financial facts or data; or (iv)
renders such other services as, in the opinion17 of the Council, are or may be rendered by a chartered accountant 18 [in practice];
and the words “to be in practice” with their grammatical variations and cognate expressions shall be construed accordingly. Explanation − An associate or a fellow of the Institute who is a salaried employee of a chartered accountant 19[in practice] or 20[a firm of such chartered accountants or firm consisting of one or more chartered accountants and members of any other professional body having prescribed qualifications] shall, notwithstanding such employment, be deemed to be in practice for the limited purpose of the 21 [training of articled assistants]. ____________________ 1
2&3
This Act received the assent of the Governor-General on 1st May, 1949 and was published in Part IV of the Gazette of India Extraordinary dated 3rd May, 1949 and further amended by – (i)
The Chartered Accountants (Amendment) Act, 1959 (No. 15 of 1959) published in the Gazette of India dated 7th May, 1960;
(ii)
The Chartered Accountants (Amendment) Act, 2006 (No. 9 of 2006) which received the assent of the President on the 22nd March, 2006 and was published in Part II Section I of the Gazette of India, Extraordinary dated 23rd March, 2006;
(iii)
The Chartered Accountants (Amendment) Act, 2011 (No. 3 of 2012) which received the assent of the President on the 8th January, 2012, and was published in Part II Section I of the Gazette of India Extraordinary dated 9th January, 2012.
Substituted for the words, “profession of accountants” by the Chartered Accountants (Amendment) Act, 1959 (No. 15 of 1959) — Gazette of India dated 7th May, 1960.
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4
The original sub-section as published in the Gazette of India Extraordinary dated 3rd May, 1949 was as follows :− A
“It extends to all the Provinces of India, and also to every Acceding State to the extent to which the Dominion Legislature has power to make laws for that State with respect to the matters dealt with in this Act.” A
This clause was substituted by the following :−
“It extends to the whole of India except the States of Hyderabad, Jammu and Kashmir, Mysore and TravancoreCochin” by the Adaptation of Laws Order, 1950, published in the Gazette of India Extraordinary dated 26th January, 1950. A
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The words, [“except the State of Jammu and Kashmir”] were deleted with effect from 15th August, 1968 by the Central Laws (Extension of Jammu and Kashmir) Act, 1968 (25 of 1968) — Notification No. F1/13/67-K dated 2nd August, 1968 of Ministry of Home Affairs. A These words were substituted for the words, “except the States of Hyderabad, Jammu and Kashmir, Mysore and Travancore-Cochin” by the Part B States (Laws) Act, 1951, No. III of 1951, published in Part II Section 1 of the Gazette of India Extraordinary dated 23rd February, 1951.
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For the Government Notifications, please see Appendix No. (1).
7,10,12
&14 Inserted by the Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f. 8th August, 2006.
8
The words, “and who is in practice” were omitted by the Chartered Accountants (Amendment) Act, 1959.
9,11,13
&16 Inserted by the Chartered Accountants (Amendment) Act, 2011 and came into force w.e.f. 1st February, 2012.
15,18
&19 Inserted by the Chartered Accountants (Amendment) Act, 1959.
17
Please see Appendix No. (2) and Regulation 191.
20
Substituted for the words, A[“a firm of such chartered accountants]” by the Chartered Accountants (Amendment) Act, 2011 and came into force w.e.f. 1st February, 2012.
6
A
Substituted for the words, “a firm of chartered accountants” by the Chartered Accountants (Amendment) Act, 1959. 21
Substituted, for the words, “training of articled clerks” by the Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f. 8th August, 2006.
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